Davis School District Benefits Orientation

1. Davis School DistrictBenefits Orientation Classified EmployeesTier 1 ~Personal Leave

2. Welcome Classified Employees – Tier 1 • If you were hired into a retirement eligible position at any Utah Retirement Systems (URS) employer anytime beforeJuly 1, 2011 you are on Tier 1. • If you were newly hired into a retirement eligible position on or afterJuly 1, 2011 your are on Tier 2 and will want to view that presentation.

3. Utah House Bill 255 • Please Note: Effective July 1, 2013 Classified Employees must be working a minimum of 30 hours per week to qualify for Retirement and/or Leave Benefits – unless they qualify for “grandfathering protection” based on previous eligibility (see Utah H.B. 255 and the Davis Classified Agreement for more information). • If you were in a position authorized to work between 20 and 29 hours per week prior toJuly 1, 2013 and remain in that position you will remain eligible for benefits under “grandfathering protection” and will view this presentation. • If you are working in a less-than-12-month position authorized for 30+ hours per week, please see the “Classified Tier 1 PLA and Sick” PowerPoint presentation. • If you are working in a 12 month position (257 days) authorized for 30+ hours per week, please see the “Classified Tier 1 VAC and Sick” PowerPoint presentation. If you are still unsure which presentation you should view, please call Payroll at 801-402-5236.

4. Before We Begin • The members of the Payroll Department are always happy to answer your questions. Feel free to call us anytimeat (801)402-5282. • Everything covered in this orientation is current policy. Things can (and do) change all the time. Make sure you stay informed about District and State policy updates that might affect you.

5. Personal Leave (PLA) • Employees who work less than 12 months (fewer than 257 contract days) and are authorized to work 30 or more hours per week (20 with grandfathering protection): • 2 days of PLA will be accrued each year* • Employees with 15 or more years of eligible service in the District: • 1 additional day of PLA will be accrued* • Employees who work 200or more contract days per school year who do not receive Vacation Leave and paid holidays: • 2 additional days of PLA will be accrued* • A maximum of 10 PLA days can be used per school/contract year • A maximum of 20PLA days can be carried over to the next fiscal year • Leave must be used by June 30thbefore the rollover to the new fiscal year on July 1st • PLA is accrued at the beginning of each fiscal year (July 1st) *A day is defined as hours per day authorized for the position. (Personal leave eligibility, accumulation, use and carry-over are based on a single position, not a combination of positions.) See the Davis Classified Agreement for more information

6. Extended Leave • Request a leave of absence from Human Resources in writing if you will miss more than 10consecutive contract days. • Family Medical Leave Act (FMLA) • Employees can request a leave of absence of up to 12 calendar weeks (in a 12 month period • Protects your job during your absence • The District will continue to pay its portion of your Insurance (if applicable) • Must have worked continuously for the District for at least 12months • Advanced Leave Requests • Personal Leave – Employees can request an advance of up to 5 days per school year, which can be paid back with one and a half days of accumulated Sick Leave (if applicable) per day advanced: 1 Day of Advanced Personal Leave = 1.5 Days of Sick Leave For more information, see the Davis Educators’ Agreement

7. Flexible Spending Account • Set aside pre-tax dollars to pay for qualifying medical/dental and daycare expenses not covered by Insurance. • Benefits: • It’s an automatic Payroll deduction • Reimbursement Claims can be submitted anytime • You have full access to your annual healthcare contribution anytime • The NBS “Flex Card” (optional) works just like a credit card! • Have immediate access to your Flex funds without submitting claims • There is an $18 charge for the card per tax year • If you have questions about Flexible Spending, please call Elizabeth in Payroll at (801)402-5236 National Benefit Services 1-800-274-0503 or 801-532-4000 www.nbsbenefits.com

8. What you need to know: • As a NEW HIREyou can enroll in Flexible Spending for this year within 30 days of your hire date, which is your first contract day. If you would like to enroll in Flex for next year you will need to enroll during Insurance Open Enrollment, which is usually in November. • You have to re-enrollin the Flexible Spending plan every yearduring Open Enrollment • Flex is based on the tax year (January 1st to December 31st)* • There is a “Grace Period” that allows participants to incur additional expenses until March 15thof the next tax year if necessary.* • Keep your receipts, even if you are using the “Flex Card”. • All funds need to be claimed through NBS by the last BUSINESS day in March of the next tax year.* • Don’t overestimate your expenses: • Use It or Lose It: If you don’t claim the money you have contributed by the deadline … you WILL lose it.* • Contribution amounts cannot be adjusted unless you have a qualifying change of status. *These deadlines may be different if you resign or retire in a year when you are enrolled in Flexible Spending. Please contact Elizabeth in Payroll at (801) 402-5236 if you have any questions.

9. Utah Educational Savings Plan – Utah’s 529 College Savings Plan College is hard, but saving for it doesn’t have to be. • UESP makes it a cinch to start saving for college. • Does not require a minimum deposit or balance • Stretch your educational dollars AND receive some wonderful tax incentives • Get more information or open an account online at www.uesp.org or call UESP at 1-800-418-2551. Investments in UESP are not guaranteed.

10. Retirement Benefits: Tier 1 Pension 401(k) The District will contribute 1.5% of your salary to your 401(k) each month as long as you are eligible for retirement benefits You can also contribute to your 401(k) but you are not required to • The District fully funds your retirement benefit (pension) • As long as you remain eligible for retirement benefits you will receive this benefit … at NO COST TO YOU! • You are fully vested after 4 years of eligible employment

11. How Much Will My Pension Pay? Pension Benefit Calculation Number of Eligible Years of Service X 2% X Average Salary (average of 3 highest years salary) = Basic Annual Benefit /12 = Basic Monthly Benefit Example 30 Years X 2% (=60%) X $40,000 (average of 3 highest years salary) = $24,000/year /12 = $2,000/month

12. When Can I Retire? • Your pension eligibility depends on your age and years of service. Here are the minimum qualifications: • 65 with at least 4 years of service • 62 with at least 10 years of service* • 60 with at least 20 years of service* • Any age with at least 25 years of service* • Any age with at least 30 years of service *There is an early age reduction if you retire under age 65 with fewer than 30 years of service Early Age Reduction If you have fewer than 30 years of service and retire before age 65, your benefit is reduced. You’ll get 3% less for every year between age 60 and 65 and 7% less per year for every year below age 60.

13. 401(k) OptionsYou can choose where and how your 401(k) money is invested PLEASE NOTE: If you have already received a paycheck, Educators Mutual will not be an option until next year(JANUARY). If you would like to make a change at that time, please notify the Payroll Department no later than JANUARY 15th. All URS 401(k) contributions will be invested in the Medium Horizon Fund unless otherwise specified.

14. Employee Contributions (Voluntary) 1 2 3 4 5 • 401(k) • 457 • 403(b) – Annuities • Traditional IRA • Roth IRA You can contribute to none, one or more. The choice is yours.

15. Which Investment PlanShould I Choose? • Consider your tax bracket before and after retirement: • Pre-tax Deductions • Lower your taxable income now • 401(k) • 457 • 403(b) • Traditional IRA • Post-tax Deductions • Pay your taxes now • Roth IRA (Tax free growth)

16. Authorized Annuity Companies For a complete listing of the Annuity companies and representatives that are authorized to provide 403(b)’s and other investment options to Davis School District employees, please contact the Payroll Department at 801-402-5282.

18. www.urs.org If you have questions about the URS website or online enrollment, call 801-366-7750

23. Your Account Number will be included with your URS Enrollment Packet , which URS will mail to your home.

24. Questions? Call Payroll: (801) 402-5282 Personal Leave and Sick Leave • Twyla: (801) 402-5326 Extended Leave and Catastrophic Leave • Marilyn: (801) 402-5327 Flexible Spending • Elizabeth: (801) 402-5236 Retirement and 401(k) • Holly: (801) 402-5176 • Cindy: (801) 402-5324

25. Thank You! If you would like step-by-step instructions for accessingMyDSDPayroll Management(where you can enter yourDirect Deposit and W-4 information, make changes to Payroll and Personal Profile information, and view/printyour pay stubs and W-2’s),please see theMyDSD Payroll Management Orientation.